Telkom passes another hurdle in R6.75bn Swiftnet deal

Telkom is in the final stages of disposing of its masts and tower business housed in subsidiary Swiftnet.

The proposed R6.75 billion deal will see TowerCo acquire Swiftnet from Telkom.

Swiftnet, a key player in the South African market, has extensive masts and towers infrastructure, and it leases co-location space to major mobile operators.

By disposing of Swiftnet, Telkom is looking to unlock shareholder value and focus on its core business operations.

In a statement, the JSE-listed telecommunications firm says: “Telkom is pleased to advise that the suspensive conditions to proceed to closing of the disposal have been fulfilled, other than standard suspensive conditions which run until the business day before closing.

“The parties are accordingly proceeding to take the necessary steps to closing of the disposal in accordance with the sale agreement.”

The announcement comes after in December last year, telecoms regulator the Independent Communications Authority of South Africa gave the green light for the multibillion-rand deal to go ahead.

This, after the Competition Commission and Competition Tribunal approved the deal.

The sale of Swiftnet’s portfolio of approximately 4 000 towers and masts marks a significant step in the implementation of Telkom’s transformative strategy to focus on core operations, while realising the value in non-core assets.

According to Telkom CEO Serame Taukobong, this transaction is a pivotal moment in Telkom’s implementation of its data-led strategy under OneTelkom.

He believes the sale will strengthen Telkom’s balance sheet, reduce debt and provide additional capital.